If the Average Aggregate Inventory Value Is $100,000 and the Cost

question 20

Multiple Choice

If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

• A)19.23
• B)4.5
• C)0.8654
• D)0.2222
• E)None of these

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Definitions:

Long Run

A period of time in which all factors of production and costs are variable, and companies can adjust all inputs.

Perfect Competitor

A theoretical market structure characterized by many buyers and sellers, freely available information, and no barriers to entry or exit.

Long Run

Long run refers to a time period in economics where all inputs or factors of production can be adjusted, allowing an analysis of long-term planning or investment outcomes.

Monopolistic Competitor

A monopolistic competitor is a firm that has many competitors in a market but differentiates its product or service enough to have some control over its price.